I-T detects ₹500 crore undisclosed income of two Tamil Nadu biz groups
Both businesses engaged in civil contracts, real estate, advertising and more are said to have close connections with the top leadership of the AIADMK, the state’s main opposition that was in power until 2021.
The income tax (I-T) department has detected over ₹500 crore of undisclosed income during searches at premises linked to two business groups in Tamil Nadu. Both businesses engaged in civil contracts, real estate, advertising and more are said to have close connections with the top leadership of the AIADMK, the state’s main opposition that was in power until 2021.
The I-T department, in a statement on Tuesday, said they seized the undisclosed incomes from searching more than 40 places in Chennai, Coimbatore and Madurai on July 6. While it did not name contractors, officials on condition of anonymity said they were Seyyadurai and Chandrasekar. This is the second time Seyyadurai has come under the I-T scanner.
Seyyadurai is considered close to AIADMK interim general secretary Edappadi Palaniswami. Chandrasekar is the publisher of AIADMK’s mouthpiece Namadhu Amma and a key aide of former municipal administration minister SP Velumani.
“During the course of the search operations, various incriminating documentary and digital evidence have been seized. The preliminary examination of such evidence indicates that both these groups have been suppressing their taxable income by claiming bogus purchases and expenses in their books of account over the last few years,” the statement said.
“In the case of one of the groups, it has been found that the payments made for these bogus purchases were being received back in cash by the group.”
In addition, evidence has been found indicating suppression of huge income on account of sharing of profits in joint ventures, which is not reflected in the regular books of account.
In the second case, it was found that the group had created a number of bogus entities which were being used for claiming bogus purchases and sub-contract expenses.
